SEEKING SOLUTIONS
Area restaurant industry feeling sting of COVID 19 pandemic
As restaurants around the country feel the effects of the COVID-19 crisis, New York state’s restaurant industry is among the most impacted, losing $1.9 billion and more than 250,000 jobs, according to a recent report by the National Restaurant Association.
A nationwide survey of more than 4,500 restaurant operators, conducted from March 23 through 26, found that an estimated $25 billion in sales and more than 3 million jobs were lost in the industry in the first 22 days of March 2020.
In New York, an estimated $1.9 billion in sales and more than 250,000 jobs were lost in the same time period.
“While our industry nationwide is deeply impacted, New York State restaurants are among the hardest hit,” New York State Restaurant Association president and CEO Melissa Fleischut said in a press release. “Now that New York has become the global epicenter of the pandemic, we fear the devastating and lasting impact on our restaurants, especially in New York
City, the culinary capital of the world.”
New York state restaurant operators reported a 58 percent decline in sales over the same period last year, compared to the nationwide 47 percent decline.
The state’s number of employees laid off was also higher than the country’s average. Nationwide, 70 percent of restaurants laid off employees and another 50 percent expect more cuts in the next 30 days. In New York, 78 percent of operators laid off employees and 52 percent expect more cuts in the next 30 days.
“While our industry nationwide is deeply impacted, New York State restaurants are among the hardest hit.”
— New York State Restaurant Association president and CEO Melissa Fleischut
Nearly half of the state’s restaurants, a total of 48 percent, have temporarily closed, compared to the nation’s 44 percent of restaurant operators that have reported temporary closures.
An estimated three percent of restaurant operators nationwide, and five percent in New York, have permanently closed their doors.
Yet another 11 percent, and 12 percent in New York, anticipate permanently closing their restaurant within the next 30 days.
“Many restaurants have already closed and will never reopen, and restaurant employees are out of work, trying to figure out what’s next,” Fleischut continued.
While the restaurant industry has been negatively impacted in the first few weeks of the COVID-19 crisis, restaurant operators
New York National Guard members help deliver food donated from the Regional Food Bank of Northeastern New York to those under quarantine. and employees are preparing for continued hardship.
“Our members are being tested across the state like never before. They’ve had to adapt on the fly as this situation isn’t changing by the week or day; it is changing by the hour or minute. Many have pivoted or revamped their business models to stay afloat for the time being. Some attempted that and decided to close,” Fleischut added, urging all to utilize takeout and delivery from their favorite restaurants during this difficult time. “Restaurants are an important piece of the local economy and must be around to assist with the eventual recovery.”
The New York State Restaurant Association is supporting its members by working with Governor Andrew Cuomo in advocating for a delay in sales tax payments, a moratorium on evictions and adjustments in State Liquor Authority regulations.
This has allowed some operators to keep their doors open during this crisis.
Looking ahead, Fleischut said in the release, “We’ll continue to seek immediate assistance for the industry and find ways to ensure long-term viability.”
Saratoga County Chamber of Commerce president Todd Shimkus said the local restaurant industry has definitely taken a huge hit.
However, area leaders are doing what they can to keep businesses afloat.
The chamber’s annual Saratoga County Restaurant Week, which was scheduled to begin on
March 20, transformed into a longer Saratoga County Take Out initiative to help restaurants promote their take out and delivery services. More than 130 restaurants across Saratoga County are currently participating.
“In talking with participating restaurants, it’s helping them to keep a few people employed and their facilities open for business. We’ve actually added restaurants to the promotion which tells us that its working,” Shimkus shared.
The chamber - in partnership with the Saratoga County Prosperity Partnership, Saratoga Economic Development Corporation, Discover Saratoga, the Saratoga Springs City Center, and the Saratoga Springs Downtown Business Association — aims to keep restaurateurs informed via email of the various programs being offered to the local owners and their employees who have become unemployed through no fault of their own.
“Our hope is that the social distancing that everyone has been doing will help to shorten the amount of time these restaurants are closed. The sooner they can be safely reopened the better obviously,” Shimkus said. “Our partnership is already talking about special promotions and reopening celebrations we might organize for when this social distancing is a thing of the past.
“If a restaurant is in dire need of support or has a questions, they can call any one of the six partners and we’re all going to do everything we can to help.”
“Our local restaurant industry is most certainly feeling the financial impact of the COVID-19 pandemic,” Rensselaer County Regional Chamber of Commerce president Kate Manley said. “Right now we’re focused on doing everything we can to assist our member eateries in promoting their takeout and delivery options, while also serving as a resource for them in helping to navigate the availability of Small Business Loans and federal grants that will help them mitigate losses.
“It is a vital industry tied to many jobs in our local economy that we must step up as a community to protect.”